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POSTED BY ON December 19, 2012 10:48 am COMMENTS (4)
Hi Friends,
This is Prem. I am from Chennai. Currently I moved to USA for project based work and is assigned to work here for 2 years.
Since, I am in US now i will be able to save some good amount of money every month and I wish to invest the same in real estate by buying some apartment in chennai ( I dont have any property right now).
I need your advice in buying a new house. I will be able to save around 1-1.5 Lakhs per month and I want to know is there an option to buy an house by paying monthly Installment rather than taking a home loan. Since, I wil be coming back to india after a while, i am thinking of investing in this way.
But, I am not sure about the process currently followed there in market and also whether I will be able to get some housing loan since my indian salart is less ( Aroud 25k per month).
Please advice.
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Dear Prem,
The possibility of purchasing a house by paying monthly Installments to the developer, rather than taking a home loan seems to be unlikely.
Our advice is that you should 1st apply to check if your loan application is getting approved. If Yes, then you can use your monthly savings to pre pay your loan. If No, then save your monthly surplus for a fixed period which will help you earn some interest. At the end of 2 years you can utilise this amount to purchase a house with an additional loan of a small amount.
Regards,
Credexpert
@ Prem
Why do you want to even get into real estate if you do not have any money.
Just increase your assets, rather than taking a liability.
Real estate is not the only way to increase your assets.
I think, you need to re-strategise in terms of your requirements and think a little out of your current box. 🙂
It will be a bit of extra pain as you are in USA but try to get a home loan if the property cost is much higher than the amount that you will be able to save in 2 years. Rest of the amount you can pay by the amount you save.
Monthly installment payment (with zero interest component as you are implying) is highly unlikely if not impossible.The large interest rates is the reason why people offer loans in the first place!
Simply saving that money each month will give you a decent sum (even with SB interest) at the end of two years after which you pay for your house in full or in part with a small housing loan to add.
Not many people can afford to do this.